Analyst Note| Dan Romanoff, CPA |
Narrow-moat Nice reported solid fourth-quarter results, with revenue above company guidance but below FactSet consensus expectations, and adjusted earnings beating both guidance and consensus. Growth in the quarter was driven entirely by cloud revenue acceleration and increasing adoption, foremost in customer engagement with Nice’s CXone platform, but excitingly as well in the financial common compliance and financial crime markets. Reflecting on the year, we view pandemic-induced accelerated cloud digital and artificial intelligence adoption within Nice’s end markets to be long-term value-adding catalysts for the company. Based on better all-around guidance and our annual model roll, we are raising our fair value estimate to $242 from $199. With shares trading consistently above $250, we view shares as fairly valued.